Technicals | Sep 29 2016
Bottom Line 28/09/16
Daily Trend: Neutral
Weekly Trend: Neutral
Monthly Trend: Neutral
Support levels: $22.28 / $20.50 – $19.76
Resistance levels: $26.05 / $28.03 / $29.22
Technical Discussion
Reasons to be cautious:
→ further asset sales feasible.
→ corrective action to the balance sheet should be dilutive for shareholders.
→ Speculation of a price war isn’t helping sentiment.
→ Continuing to lose market share in the grocery market.
→ Margins will remain tight and potentially decline further in the near term.
→ Analyst support remains negative.
It’s still difficult to find a broker that is positive on Woolworths although of course this isn’t the be all and end all, even in regard to fundamental analysis. The general consensus appears to be that the company is going to slowly turnaround although it’s going to be a long drawn-out process. The recent rally likely prices in such a development which again means it’s difficult to get overly enthusiastic at this juncture. As long as buyers continue to step up to the plate just above the $20.00 mark, which is our expectation, there is scope for higher prices albeit much further down the track. We retain a neutral stance.
Re-published with permission of the publisher. www.thechartist.com.au All copyright remains with the publisher. The above views expressed are not by association FNArena's (see our disclaimer).
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